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Security is a vital aspect of crypto holdings, and owners of cryptocurrency need to ensure that they have the highest level of security possible in place to protect their funds from hackers.
Many crypto holders use two-factor authentication to protect their crypto wallets, and this usually involves the use of SMS services to confirm the identity of the holder.
The security of SMS services as a method to authenticate the identity of a person was questioned after the Twitter page of Jack Dorsey, founder of the social media platform, was hacked.
Jack’s Twitter accessed through SMS authentication
The Twitter founder’s page was hijacked on the 30th of August. The hacker went on to post swear words on the page before the tweets were removed and the account was suspended.
The hacker managed to gain access to the account through a SIM card swap which resulted in them being able to get the authentication code for the account. From then on, the hacker had complete access to the page until Twitter suspended it.
Sun warns crypto holders
Tron’s founder and CEO, Justin Sun, took the opportunity to warn crypto holders to shift from using SMS verification to using other more secure methods such as Google Authenticator.
Those who buy TRX are encouraged to use such authentication services to protect their TRON Wallet. Sun said using such software would help holders to protect their crypto wallets and Twitter accounts from being hijacked by hackers.
— Justin Sun (@justinsuntron) August 31, 2019
The hijacking of Jack Dorsey’s Twitter account showed that even high profile individuals are at risk of being hacked. There is significant security oversight on the part of SIM card providers, which places everyone who uses this form of authentication at risk.
Cryptocurrencies are highly volatile assets, and a few tweets from an industry leader could affect the price of these digital assets.
Hackers trying to control the markets usually attempt to cause panic through tweets, and hence, industry leaders need to make sure that their Twitter accounts are secure at all times.
Offline storage of crypto holdings
In a bid to ensure that crypto users have the most security on their wallets, several crypto wallet service providers offer cold wallets to their clients.
These wallets store crypto holdings offline, which means they cannot be accessed using the internet. This puts these holding out of the reach of hackers who rely on internet connections to access people’s crypto wallets.